The largest digital services provider in Russia

Rostelecom consolidates 100% of Bashinformsvyaz

Print version
Return to the list

Rostelecom OJSC (“the Company”) (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that its Board of Directors has approved the consolidation of 100% of the ordinary shares of OJSC Bashinformsvyaz. The Company therefore plans to announce a voluntary share buyback from Bashinformsvyaz’s shareholders at a price set by an independent appraiser of no more than RUB 8.53 per ordinary share. The consolidation process could take several months and will require approximately RUB 2.4 billion.

The full consolidation of Bashinformsvyaz’s ordinary shares will increase the level of corporate control and will help to facilitate:

  • Quicker reduction in duplicated management functions, as well as the operational and capital expenses related to unifying with Rostelecom’s investment, procurement, technical, commercial and marketing policies;
  • Increased revenue and enhanced customer loyalty through offering new tariffs and services, including a broader TV offering for retail subscribers and federal products for corporate users (cloud services and VPN);
  • More active operational integration, including the gradual transition to Rostelecom’s IT systems.

The consolidation also eliminates the impact the fluctuations in Bashinformsvyaz’s ordinary share price has on Rostelecom’s RAS statements. It also eliminates the adjustment for non-controlling shareholders in Rostelecom’s IFRS statements with regard to balance sheet assets, net profit and dividends received.

Maria Florentyeva, Senior Vice President of Rostelecom, commented: “Consolidating 100% of Bashinformsvyaz will help us to speed up the operational integration and improve internal efficiencies at Bashinformsvyaz. The whole process will allow Bashinformsvyaz to continue to develop within Rostelecom group and will enable the Group to fully realise potential synergies.”



Notes to Editors

OJSC Bashinformsvyaz is the main player on Bashkortostan’s fixed line market. The company has modern telecommunications infrastructure in Bashkortostan’s largest cities and has a fibre optic network of over 21,000 km in length. Bashinformsvyaz has over 800,000 fixed line subscribers, 490,000 broadband customers and 390,000 TV subscribers.

Rostelecom currently owns 70.8% of Bashinformsvyaz’s ordinary shares.